Bitcoin Cash - Now More Profitable To Mine Than Bitcoin (Core) - Coins Worth Taking Risks On #4 - Places To Diversify BTC At This All-Time High
With the news coming overnight that Bitcoin Cash is now more profitable to mine than Bitcoin (Core), there is now another reason to be excited about Bitcoin Cash.
Bitcoin Cash is the closest implementation of Satoshi Nakomoto's whitepaper for Bitcoin. He specifically noted that block-size should increase regularly with technology, to avert all the problems that Bitcoin (Core) is having once again - backlogged transactions and high transaction fees.
Bitcoin Cash, on the other hand, has just mined its first 8MB block, containing roughly 8x as many transactions as the 1MB blocks we have become used to with Bitcoin (Core).
Bitcoin Cash can do everything that Bitcoin (Core) can do, only better. It's a bargain on a technical basis, and the only reason the price differential is as aggressive is due to the lack of network effect and user acceptance of Bitcoin Cash. Indeed, this is a large problem, but not an intractable one, and no bargain investment is without a perceived fly in the ointment.
Bitcoin Cash is not without other risks as well. Though decentralized from a technical standpoint, unlike a coin containing off-chain transactions such as SegWit, due to relatively low miner support a large amount of Bitcoin Cash blocks are mined by only a few miners. Concentrated hash power always presents the potential of 51% attacks. Luckily, the increase to parity in mining value between Bitcoin (Core) and Bitcoin Cash that occurred last night should hopefully help to bring in additional miners, reducing this risk.
The honest truth is that I would not be surprised to see Bitcoin Cash go to $0, or to see it go to $4500+ and replace Bitcoin (Core). I don't know what the market will perceive the fair value of this coin. It's difficult to predict how rational the market will be when presented with a superior technical option that is difficult to perceive/understand as superior, while also presented with a network-effect deficit.
However, I know I'll be taking at least a few Bitcoin Cash coins along for the ride, just in case.
Long-term risk level: Medium-Low. I don't see this coin going to $0 as a very likely outcome, and under $200 may not happen again.
Short-term risk level: Medium. Bitcoin Cash is volatile and may drop to re-base after it's sudden run.
Suggestion: Set escalating limit-buy orders at prices you are comfortable with, then forget about them until filled. Owning 1 BCC at market is probably going to be a fine investment, long-term.
Please let us know in the comments if you have any questions, concerns, or ideas about properly pricing this coin!
Note: The above does not constitute investment advice, and I am not an investment adviser. Do your own due diligence. My returns may not be worth mimicking, so choose to follow my entry points at your own risk. I do not advise trading, but holding coins you believe in off-exchange, preferably on a Ledger Nano S (or better).
Sources: Coin.dance, CoinMarketCap, Reddit, Google, Bittrex, news.bitcoin.com
Well, we can't know what's in store for bitcoin cash but it could go anyway. Will be keeping an eye on the prices and if It's going down I'll probably buy.
The move to mining profitability is huge. There is also talk of some big fish moving in as a semi-ideological statement that may end up also being very profitable. We could surge up to 1k easily, I think, but it could go either way.
I recommend owning a couple.
Way to report on this. The information is getting out there and people are more and more aware. Been an explosion on the bitcoincash tag here lately and I hope people are getting wise.
Thanks for sharing. I've slowly been dollar cost averaging my way into Bitcoin Cash the more I read about it.
Do you think Bitcoin Cash can really overtake Bitcoin with that name though? I feel when the average person hears Bitcoin Cash, they'll too easily confuse it with Bitcoin, thereby building up Bitcoin's brand.
I think that ultimately, one of these Bitcoins will fail, and the remaining one will once again be called Bitcoin.
Some people simply consider whichever chain has more hash power to be Bitcoin by consensus default.
thanks for sharing. curious where we can get info to support that it's more profitable to mine bitcoin cash than core? thanks,
This is so helpful.
You can see one calculation at this link:
https://cash.coin.dance/blocks/profitability
Note this may not include fees for processing transactions, so at the moment, it may be underestimating profitability of Bitcoin (Core) by up to 25%.
thanks
You're a star!
This is absolutely epic!
Very interesting information. Thanks for sharing.